Dividend Update - November 2019
It's the end of one month and the beginning of another so it's time for my favorite update: my dividend update. These dividend updates reflect all dividends that I receive through my investing pursuits. I hope they can help inspire you to take control of your own finances and invest to build a passive income stream. What you use that stream for is up to you, whether it's to fund early retirement, just provide some FI/FU money, or even to provide for an annual vacation; the key is that it can provide options and open up all sorts of possibilities. You can check my dividend income or progress pages to see what dedication to an investment plan can give you.
It's hard to believe that Thanksgiving has already come and gone and December is well under way. My FI Portfolio, taxable account, produced $344.78 in dividends for November while my Folio First portfolio chipped in another $4.74. My Roth IRA added another $12.56 with my Rollover IRA contributing $193.29. That puts my taxable account dividends at $349.52. Across all accounts November's total came to $555.37.
Making Money While I Sleep
The power of joining the ownership class is that those companies can work much harder for you than you can. Think about it. By myself I have to devote my own time to my regular job in order to make money. However by buying a stake in a high quality business I now get to leverage my own time that I exchanged for money into companies that are working around the clock to make products or provide services for their customers. Those companies are working 24/7/365 which means that I make money even when I sleep.
During November the companies I own paid me $18.51 per day or $2.31 per hour assuming 8 hour work days. For the year those numbers are $24.93 per day and $3.12 per hour.
As I mentioned above my FI Portfolio produced $344.78 in dividends during November. It's still a good ways away from the next milestone, $400, but it's moving in the right direction. Compared to August, November's total was 2.6% higher.
The year over year comparison gives a better idea of the growth with less possibility for fluctuations due to odd payout schedules. Compared to November 2018 the increase came in at 13.7%! That's what I'm talking about! Purchases accounted for much of the increase although reinvestment and of course dividend increases certainly helped. The YTD total through the end of November shows a 12.5% rise compared to the the first 11 months of 2018.
My Roth IRA generated $12.56 in dividends for November. That's a solid 1.2% increase from August solely from dividend reinvestment.
I didn't receive any dividends in November 2018 within my Roth IRA so there's not a quarterly year over year comparison. However, the YTD total through November of each year has 2019 showing a huge 40.0% increase compared to 2018. New purchases accounts for the majority of the rise, but organic growth as well as reinvestment contributed as well.
In March I mentioned how I will start reporting on my Rollover IRA. The bulk of those funds are invested in dividend growth companies, although there's a few that aren't, so to give the cleanest picture I will show just the dividend growth investments during my monthly reports. That being said I'm not too worried about any particular month/quarter of dividends since my current plan is to be a bit more active with these funds than I would in my taxable accounts.
Companies fall in and out of favor with market participants throughout the year and I want to attempt to capture some of that change in emotion. If I feel a company is undervalued I'll purchase shares and won't sell until the story changes or the market price hits what I feel is at least 1.3x "fair value". This is just a little experiment that I wanted to try and if I feel it's too much hassle or that I'm constantly taking 2 steps forward and 1 step back then I'll revert back to my bread and butter buy and hold strategy.
As such the time period comparisons are less important for this account since I want to take a more active approach.
That being said, my Rollover IRA produced $193.27 in dividends during November which was a 1.2% increase from August. The year over year comparison looks much better at a 16.4% increase although much of the change was due to new purchases rather than dividend growth. The YTD comparison for both years has 2019 showing a 57.8% increase compared to 2018.
Dividend Raises During the Month
November was tied with both March and May as the lowest months of the year for number of increases with just 2 companies boosting up their dividend. Unfortunately, November also came in with the smallest dollar increase from dividend raises. That's a bit disappointing, but in the grand scheme of things it's nothing to be that I'm concerned about. In the end, I'm still getting paid more money just for owning a stake in a great business. There's not much better than that.
Combined the 2 companies in my FI Portfolio boosted my forward 12-month dividends by $3.86. Thus far in 2019 I've received 46 increases from 41 of 55 of the companies within my FI Portfolio combining to increase my forward 12-month dividends by $316.33.
My forward 12-month dividends for my FI Portfolio ended November at $7,771.69 while my FolioFirst forward dividends are at $101.12. That pushes the total taxable account forward 12-month dividends up to $7,872.81. My Roth IRA's forward-12 month dividends increased to $632.91. My Rollover IRA's forward 12-month dividends are at $2,343.75. Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $10,849.47 in dividends over the next year.
The following chart shows the monthly dividend totals for each year that I've been investing as well as the monthly average. It's not always an increase as some companies have weird payout schedules, as we saw above, and eventually some positions will get dropped, but the long-term trend is what matters.
The rolling 12-month monthly average for my FI Portfolio is at $579.78 per month which is $54.84 or 10.4% above 2018's monthly average of $524.95.
Dividends Received Breakdown
|Dividends Received Breakdown November 2019|
How are you looking on your dividend goals for 2019 with less than one month to go?
Let me know in the comments below!